Industry: Industrial Automation
Published Date: August-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 173
Report ID: PMRREP2790
The commercial refrigeration equipment market is estimated to reach a valuation of US$46.7 Bn by the year 2031, at a CAGR of 7.9%, during the forecast period 2024 to 2031.
Key Highlights of the Market
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Attributes |
Key Insights |
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Commercial Refrigeration Equipment Market Size (2024) |
US$27.4 Bn |
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Commercial Refrigeration Equipment Market Size (2031) |
US$46.7 Bn |
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Forecast Growth Rate (CAGR 2024 to 2031) |
7.9% |
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Historical Growth Rate (CAGR 2018 to 2023) |
6.7% |
North America Surpassed 1/3rd Market Share in 2023
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Region |
Market Value Share 2023 |
|
North America |
34% |
North America held a significant portion of the worldwide commercial refrigeration equipment market, with a revenue share exceeding 34%. The substantial expansion can be ascribed to the well-established retail sector and the presence of prominent supermarket chains, such as Walmart, Costco, Kroger, and Publix.
In addition, the significant presence of prominent manufacturers of commercial refrigeration equipment, together with the early adoption of intelligent equipment in commercial kitchens, is contributing to the ongoing growth of the regional market.
The market for commercial refrigeration equipment in Europe is projected to experience a CAGR of more than 4% between 2023 and 2030.
The enormous demand for commercial refrigeration equipment from the food, beverage, pharmaceutical, and chemical sectors is the cause of this phenomenon. The market growth is being driven by a significant increase in the consumption of convenience meals in the European region.
Asia Pacific Gains from Thriving Travel Industry
The Asia Pacific region is projected to experience a CAGR of over 6.0% from 2023 to 2030. This growth can be attributed to factors such as improving economic conditions, stable employment rates, increasing gross disposable income, and higher spending on leisure activities like travel, and dining out.
The thriving travel and tourism sector in places like Malaysia, Indonesia, and Singapore is additionally bolstering the growth of this particular market category.
Refrigerators & Freezers Account for over 25% Market Share
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Market Segment by Product Type |
Market Value Share 2023 |
|
Refrigerators & Freezers |
25% |
Based on product type, the commercial refrigeration equipment market is further classified into refrigerators & freezers, transportation refrigeration equipment and beverage refrigeration, where the commercial refrigeration & freezers segment dominates the market.
The growth of the said segment can be ascribed to the global proliferation of the travel and tourist sector, which has resulted in the establishment of numerous eateries and dining establishments.
The chapter also discusses blast chillers, which are mostly utilized for rapid freezing or cooling of things at lower temperatures and preventing bacterial growth in the stored item.
In addition, the increasing use of chillers by healthcare practitioners to preserve tissue samples of vaccinations, conduct controlled testing, and keep important pharmaceuticals is also driving the expansion of this sector.
The beverage refrigeration sector is projected to experience a CAGR of around 6.0% between 2023 and 2030. This growth can be attributed to the rising utilization of medium-capacity beverage coolers by tourists and vacationers.
Furthermore, the growing popularity of 'grab and go' and 'drink and shop' practices in retail chains, aimed at enhancing the shopping experience for customers, is anticipated to fuel the demand for beverage commercial refrigerators in the approaching years.
Self-Contained Systems Dominant
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Market Segment by System Type |
Market Value Share 2023 |
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Self-Contained |
52% |
Based on the system type, the market is further classified into self-contained and remotely operated, where the self-contained segment dominates the market.
The self-contained category dominated the global commercial refrigeration equipment market in terms of revenue. This was due to the increasing demand for these appliances, which can be easily and cost-effectively installed, require low maintenance, and have low relocation costs.
According to data from the Environmental Protection Agency (EPA), self-contained commercial refrigeration equipment accounted for approximately 26% of global HFC emissions in 2020.
Manufacturers are being forced to replace the R-404A refrigerant with R-448A due to strict HFC emission regulations. This replacement reduces the global warming potential (GWP) of refrigeration equipment by around 70%.
The segment of refrigerators operated remotely is projected to experience significant CAGR between 2023 and 2030. This growth is driven by the rising usage of these refrigerators in restaurants that have limited kitchen space, as they help to minimize the heat generated by the refrigerators.
These refrigerators produce less noise that resonates compared to self-contained refrigerators since the compressor unit is located outside the kitchen. Nevertheless, they have worse energy efficiency and necessitate the expertise of specialists for installation, hence exacerbating the already substantial installation expenses.
Increasing demand for frozen food, bakery products, and packaged food products is driving the demand for commercial refrigeration equipment market.
Moreover, to decrease carbon footprints, the manufacturers are focusing on developing commercial refrigeration equipment that consumes less or limited amount of energy.
The US Department of Energy and Environmental Protection Agency have also introduced new regulations and standards for commercial refrigeration with a focus on energy efficiency and minimizing its impact on the environment.
To comply with the new regulations, companies are thus investing in the development of new refrigeration systems with advanced technology.
Some of the commercial refrigeration equipment manufacturers are also redesigning their products to comply with new standards. Manufacturers are also sourcing new materials and are pursuing new safety certifications to offer a sustainable product.
Supermarkets being the most energy-intensive retail businesses, with most of their load of electricity on refrigeration systems are looking for commercial refrigeration equipment that can help them to save a lot on power consumption. With advancements in technologies, companies are moving towards introducing smart refrigeration systems equipped with sensors.
The market experienced significant evolution and growth from 2019 to 2023, driven by technological advancements, regulatory changes, shifting consumer preferences, and economic factors influencing the food and beverage industry worldwide.
In 2019, the commercial refrigeration equipment market began the period with robust growth. Advancements in refrigeration technologies, including energy-efficient systems and innovative cooling solutions, propelled market expansion.
Increasing investments in research and development by key industry players aimed at enhancing product efficiency, reliability, and sustainability further bolstered market dynamics.
From 2022 onwards, the market witnessed a transformative phase driven by rapid technological integration and heightened emphasis on sustainability.
Industry leaders focused on developing next-generation refrigeration systems that optimize energy consumption and reduce carbon footprint.
The shift towards natural refrigerants such as hydrocarbons and CO2 gained momentum, driven by regulatory initiatives promoting environmental stewardship. Moreover, increasing awareness among end-users regarding energy efficiency and lifecycle costs spurred demand for energy-efficient refrigeration equipment.
Manufacturers responded by introducing innovative designs and systems capable of minimizing operational costs while maximizing performance and reliability.
Technological Advancements and Innovation
Technological innovation stands as a primary driver propelling the market forward. Manufacturers continually invest in research and development to introduce advanced refrigeration systems that enhance energy efficiency, reduce environmental impact, and improve operational performance.
Key technological advancements include the adoption of energy-efficient compressors, smart refrigeration systems with remote monitoring capabilities, and the integration of Internet of Things (IoT) for predictive maintenance and optimization of cooling processes.
In particular, advancements in refrigerant technologies are pivotal. The shift towards environmentally friendly refrigerants, such as hydrocarbons (HCs), ammonia (NH3), and carbon dioxide (CO2), is driven by regulatory restrictions on fluorinated gases (F-gases) due to their high global warming potential (GWP).
Manufacturers are innovating to develop refrigeration equipment that not only complies with stringent environmental regulations but also enhances sustainability credentials, appealing to environmentally conscious consumers and businesses.
Expansion of Food Retail and Foodservice Sectors
The expansion of food retail chains, supermarkets, convenience stores, and foodservice establishments worldwide significantly contributes to the demand for commercial refrigeration equipment.
With the increasing global population and urbanization trends, the need for efficient cold storage and display solutions for perishable goods is escalating. Additionally, changing consumer lifestyles, including the growing preference for fresh and healthy foods, drive the demand for refrigeration equipment capable of preserving product quality and safety.
In response to these market trends, manufacturers are developing specialized refrigeration systems tailored to the needs of specific applications, such as chilled display cabinets, walk-in coolers, and refrigerated transport units. These solutions are designed to optimize space utilization, ensure food safety, and enhance the overall shopping and dining experience for consumers.
Regulatory Compliance & Energy Efficiency Standards
One of the primary restraints for the global commercial refrigeration equipment market is the increasingly stringent regulatory environment. Governments worldwide are implementing strict energy efficiency standards and environmental regulations to reduce greenhouse gas emissions and promote sustainable practices.
For instance, regulations such as the European Union's Eco-design Directive and the US Department of Energy's (DOE) Minimum Energy Performance Standards (MEPS) mandate minimum energy efficiency levels for commercial refrigeration equipment.
Compliance with these regulations requires manufacturers to invest heavily in research and development to design and produce energy-efficient refrigeration systems.
Meeting these standards often involves incorporating advanced technologies such as high-efficiency compressors, improved insulation materials, and smart control systems.
These enhancements increase manufacturing costs and may result in higher prices for consumers, thereby impacting market adoption rates, especially in price-sensitive markets.
Growth in Food Retail and Cold Chain Logistics
The expansion of food retail chains, supermarkets, convenience stores, and online grocery platforms worldwide drives demand for efficient and reliable commercial refrigeration solutions. Rapid urbanization and changing consumer lifestyles, including increased demand for fresh and perishable foods, further stimulate market growth.
Industry participants can capitalize on these trends by offering tailored refrigeration systems that optimize space utilization, ensure food safety, and enhance the visual appeal of products in retail environments.
The growing emphasis on food safety and regulatory compliance in the cold chain logistics sector presents opportunities for refrigeration equipment manufacturers. As global trade in perishable goods expands, there is a heightened demand for temperature-controlled transportation and storage solutions.
Industry participants can develop specialized refrigeration equipment for cold storage warehouses, refrigerated trucks, and shipping containers, catering to the stringent requirements of pharmaceuticals, healthcare, and perishable food industries.
Technological Innovations
Future opportunities in the commercial refrigeration equipment market lie in the continued adoption of advanced technologies aimed at enhancing energy efficiency, sustainability, and operational performance.
Manufacturers are increasingly focusing on developing next-generation refrigeration systems that integrate smart controls, predictive maintenance capabilities, and remote monitoring functionalities enabled by the Internet of Things (IoT).
These technologies not only optimize energy consumption but also reduce operational costs and enhance equipment reliability. The shift towards natural refrigerants, such as hydrocarbons (HCs), ammonia (NH3), and carbon dioxide (CO2), presents significant growth opportunities.
These refrigerants have lower global warming potential (GWP) compared to traditional fluorinated gases (F-gases) and align with regulatory mandates to reduce environmental impact.
Manufacturers investing in research and development to improve the efficiency and safety of natural refrigerant-based systems can gain a competitive edge in the market. Moreover, innovations in refrigerant blends and system designs that mitigate flammability and toxicity concerns further expand opportunities for market penetration.
The global commercial refrigeration equipment market is highly competitive and dynamic, characterized by a diverse range of industry participants striving to innovate and expand their market presence. Key players in the market leverage technological advancements, sustainability initiatives, and strategic partnerships to maintain a competitive edge.
Recent Industry Developments
In Nov 2023, Whirlpool Corporation unveiled SlimTech insulation, a vacuum-insulated structure (VIS) technology, in a refrigerator.
In Sep 2023, Carrier formed a partnership with Relayr, Inc., a firm specializing in industrial Internet of Things (IIoT) technologies to enable food retailers to circumvent the initial capital expenditure needed for refrigerated equipment and infrastructure.
In Mar 2023, Carrier introduced the Transicold EverFRESH active-controlled environment system for refrigerated containers. This software creation facilitated the transportation of a diverse array of perishable goods, including valuable commodities.
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Attributes |
Details |
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Forecast Period |
2024 - 2031 |
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Historical Data Available for |
2018 - 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Regions Covered |
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Key Companies Profiled |
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Pricing |
Available upon request |
By Product
By System Type
By Application
By Region
To know more about delivery timeline for this report Contact Sales
The global commercial refrigeration equipment market is estimated to be valued at US$27.4 billion in 2024.
North America is the leading region in the market.
The global commercial refrigeration equipment market is predicted to exhibit a CAGR of 7.9% over the forecast period.
AHT Cooling Systems GmbH, Ali Group S.r.l. a Socio Unico, Carrier, Daikin Industries Ltd., Dover Corporation are some of the major key companies in the market.
Self-contained is the dominant system type in the market.
